India keeps petrol and diesel prices unchanged despite global crude crossing USD 110, as oil companies absorb costs and improved energy stocks stabilise domestic fuel supply
-1773037196078_d.png "West Asia tensions: Indian fuel prices remain unchanged despite global oil surge")
Indian petrol, diesel prices unlikely to be raised in near term. Representational Image
Petrol and diesel prices in India are unlikely to rise immediately, even though global crude oil prices have crossed USD 110 a barrel due to increasing tensions in the Middle East, the IANS reported.
The government has asked state-run oil companies to absorb the extra cost for now, meaning consumers will not see higher pump prices in the short term, according to the news agency.
Sources said told the IANS that oil marketing companies (OMCs) may face lower profits because of the rise in international crude prices, but the retail fuel rates across India will remain unchanged for the moment.
Global oil prices hit new highs
International oil markets have seen a sharp increase recently. West Texas Intermediate (WTI) crude rose 27 percent to USD116 per barrel, while Brent crude climbed 28 percent to USD 116. This is the first time since 2022 that both benchmarks have crossed the USD100 mark.
The surge comes amid escalating conflicts in the Middle East and supply disruptions at the Strait of Hormuz, a key global shipping route for oil.
Domestic fuel prices remain unchanged, thanks to our government!
Despite the jump in global crude, India’s domestic petrol and diesel rates have not been adjusted. Usually, fuel prices in India are revised in line with international oil movements. However, in times of extreme volatility, the government sometimes asks oil companies to absorb the price change to protect consumers, as per the IANS.
Government sources confirmed on Saturday that fuel prices will not rise immediately. They also noted that India’s energy stock position is improving and becoming more stable, which gives authorities confidence in managing supply.
Diversifying oil imports reduces risk
India has been working to reduce dependence on vulnerable shipping routes like the Strait of Hormuz. Previously, about 60 percent of the country’s crude oil imports came from sources outside this route. That share has now increased to around 70 percent.
Officials mentioned that the first oil cargo has already started moving through the Strait of Hormuz, showing that supply flows are stabilising, according to the IANS.
Middle East conflict and price risks
Experts warn that the ongoing war in the Middle East could further impact oil supplies. Qatar’s Energy Minister Saad al-Kaabi cautioned that if hostilities continue for even a few days, Gulf exporters might declare 'force majeure' or greater force, halting deliveries. This could push crude oil prices to USD 150 per barrel and natural gas to USD 40 per MMBtu in just a few weeks, the IANS reported.
Meanwhile, US President Donald Trump commented that the higher oil prices are a temporary effect related to confronting Iran’s nuclear threat.
Outlook for consumers
For now, Indian consumers can expect petrol and diesel prices to stay stable, thanks to government intervention and improved energy stock levels. However, experts warn that prolonged tensions in the Middle East or further supply disruptions could eventually affect global and domestic fuel prices.
(With IANS Inputs)
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